THE SPARK INVESTMENT GROUP BLOG
In these articles, you’ll find fresh and relevant content designed to help you make savvy and informed investment decisions. With these tips, you’ll be on your way toward creating the life you want to live.
Real estate investing can be much like going to the grocery or department store. You can find a hundred different brands of cereal in a grocery store or dozens of different styles of blue jeans....
One question that comes up most often is, which investment provides a better return? People want to know if investing in real estate properties is more lucrative or if real estate syndications are truly the best choice.
Real estate syndications’ major benefit is being a true hands-off investment, as it saves investors from the stress of maintenance issues, tenant complaints, and dipping cash flow. That right there can make you feel like syndications are a better deal (who wouldn’t want to avoid that stress!?).
On the other hand, with rental properties, you have to do all the legwork. That includes finding a broker and a property manager and coordinating with lenders. So, in exchange for all that hard work, you’d expect better returns, right?
If you’ve spent any time on the Spark Investment Group site at all, you’re familiar with our perspective on real estate syndications.
We think they’re awesome, that people should be interested and trying to invest in them, and we can’t wait to continue to share more about them so that more people have the opportunity to learn about these types of passive investments.
However, we also know that real estate investments are a big investment and are not the perfect choice for everyone. So, here are the top four reasons why someone should NOT invest in real estate syndications.
No matter how many jobs you’ve had or how far down the career path you are, facing any workplace transition brings up emotions, fears, and possibly, some sleepless nights. The bittersweet feelings of quitting a job include guilt, worry, anxiety, excitement, adrenaline, and gratefulness.
It only seems sensible that a cushion of cash in the bank might make any transition less worrisome. In this article, we’ll share 3 steps toward making the leap from the ol’ 9-5 or for many more likely to be the 10 hour day 7 to 7, through real estate investing so you can spend less time behind a desk and more time doing things you love.
The two terms, financial independence and financial freedom are used interchangeably, but what does financial independence really mean, and how’s it different from financial freedom?
Let’s dissect what it means to be financially independent vs. financially free and how investing in real estate can help get you there.
The process of investing in a real estate syndication is very different from picking a stock or a mutual fund online. Furthermore, unlike typical investment properties, there are hold times, barriers to entry, and a whole set of expectations that you need to know about prior to committing to a deal.
As a smart investor, you’ve got to know exactly why you’re choosing a particular investment in addition to the required credentials, the process, what’s involved, and how long you should expect to wait until payout. Guess what? You’re in luck!
The most important thing we focus on in a real estate syndication is capital preservation. In other words, we focus on how NOT to LOSE money. That’s our number one priority, as boring as that might sound.
Imagine spotting an old bookshelf sitting out on the curb. You pull over to check it out, and since it’s in good shape, you proceed to lug it home and give it a fresh coat of paint.
A few years later, you sell the shelf to someone else who claims to have the perfect spot for it.
You took something that had been overlooked, committed some sweat equity, and breathed new life into it. This is the essence of value-add, and it’s a commonly used strategy in real estate investing.
When you first begin to consider real estate syndication as an investment option, it can feel lonely, intimidating, or even like you’re going in blindfolded.
I personally experienced fears around investing in a real estate investment property I’d never seen, concern about how I’d get my money back, and doubt around the inability to log into an bank or stock account and see my money.
These fears were addressed head-on through research. Every article I read and every conversation I had built my certainty until I began to feel confident to move forward and make my first syndication investment and create a passive income stream.
Imagine with me, that your workday began with the usual routine, but halfway through your morning, you received the news you’d been laid off.
For many Americans, that means zero income starting tomorrow morning.